Côte bosses back down over tips and offer staff new deal

Tip change: The Côte restaurant chain has altered its policy
Lucy Young

Staff at restaurant chain Côte were celebrating today as company bosses caved in to pressure and scrapped their policy of taking service charges added to bills rather than giving them to waiters as tips.

The decision comes after the Standard revealed the policy, under which a 12.5 per cent service charge is automatically added to every bill but never leads to waiters’ take-home pay rising or falling in line with how busy or quiet their restaurant is.

Workers also claimed they were made to tell customers the service charge was split among staff, which many felt was misleading.

The revelation led to calls from politicians and campaigners to scrap the policy and saw the Government launch a consultation into unfair tipping practices at restaurants across the country.

Côte management then launched a review, including a survey of 250 members of staff, according to internal documents seen by the Standard. Management found fewer than one in five staff wanted to keep the current system, which saw them take home around £7.50 an hour instead of the previous minimum wage of £6.50.

Under the new policy staff will now get a variable rate of pay depending on how busy or quiet restaurants are, after 84 per cent said they wanted a new policy. But staff will now have to pay a £2-a-day contribution to drinks and meals provided on their shift, previously covered by the company.

The new policy will be trialled for two to three months before a tronc system is set up for all the service charges to be pooled and handed out to staff.

A company email has also told managers that if a customer asks for the service charge to be removed and a cash tip is left instead, that then belongs to the waiter. Since Côte’s policy was first revealed, other restaurant chains have been exposed for using similar tactics, including Bill’s and Polpo.

A Côte spokesman said it had “listened closely to the debate around the service charge and tipping”, but denied it had been keeping any of the service charge.

"We ensure that all of the service charge goes to the staff in the restaurant where it is given.”

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